By Katherine Hamilton
Republic Airways and Mesa Air Group have agreed to merge and create a publicly-traded regional airline in an all-stock transaction.
The Carmel, Ind., and Phoenix companies said Monday they plan to name the merged company Republic Airways and trade it under the symbol RJET. The deal is set to close late in the third quarter or early fourth quarter of 2025.
Mesa shares rose 5% to 75 cents in pre-market trading Monday.
Republic shareholders will own 88% of the combined airline's common shares. Mesa shareholders will own a minimum of 6% and up to 12% dependent on Mesa's achievement of certain pre-closing criteria, the companies said.
Before the merger closes, Mesa has to dispose of certain assets and extinguish certain liabilities, the companies said. All of Mesa's outstanding debt obligations will be extinguished as a result of the transaction, and the company won't contribute any debt to the new airline, they said.
The combined company is expected to earn $1.9 billion in revenue and be led by Republic's executive leadership team. The companies anticipate merging will help them grow financially and operationally with a larger unified fleet.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 07, 2025 07:38 ET (11:38 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.